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DOL reaches settlement with Prudential over group life claims denials


The U.S. Department of Labor announced a settlement agreement that could help simplify the group life insurance claim process for clients coping with the loss of loved ones, reports Think Advisor. DOL lawyers negotiated the settlement agreement with Prudential Insurance Co. of America, to resolve concerns about how the company has dealt with questions about some group life insureds’ insurability, the report says. The DOL found Prudential had denied about 200 supplemental life claims, from 2017 through 2020, based on allegations that group life plan participants had failed to provide evidence of insurability, in some cases after insureds had paid premiums for years.

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